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On Market Liberalisation and Efficiency: A Structural VECM Analysis of Dry Beans Markets in Malawi

Author

Listed:
  • Nyondo, Christone R.J
  • Davidova, Sophia M.
  • Bailey, Alastair

Abstract

Economic theory predicts positive effects of market liberalisation on market efficiency and integration. This paper investigates the effects of liberalisation on dry beans markets systems in Malawi. It also investigates the nature of structural relationships existing within each market system. The analysis relies on structural vector equilibrium correction models (SVECM). The results suggest that dry beans markets in Malawi are integrated and markets within the Southern region market system share stronger links in the short-run than those in other regions of Malawi. The analysis also reveals that peripheral markets drive prices in central markets.

Suggested Citation

  • Nyondo, Christone R.J & Davidova, Sophia M. & Bailey, Alastair, 2013. "On Market Liberalisation and Efficiency: A Structural VECM Analysis of Dry Beans Markets in Malawi," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158696, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc13:158696
    DOI: 10.22004/ag.econ.158696
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    References listed on IDEAS

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